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Budget transparency and governance quality: a cross-country analysis

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  • Marco Bisogno
  • Beatriz Cuadrado-Ballesteros

Abstract

The aim of this study is to assess whether there is a relationship between budget transparency and governance quality. The so-called openness movement and the global financial crises, which have put significant pressure on governments to cut expenditures and ensure balanced budgets, have motivated this research. The public choice and principal-agent theories have been used to investigate this relationship, implementing econometric models based on a sample of 96 countries over the period 2008–2019. The results show that higher levels of budget transparency positively affect the quality of governance, and vice versa, documenting simultaneous causality between both issues.

Suggested Citation

  • Marco Bisogno & Beatriz Cuadrado-Ballesteros, 2022. "Budget transparency and governance quality: a cross-country analysis," Public Management Review, Taylor & Francis Journals, vol. 24(10), pages 1610-1631, October.
    • Handle: RePEc:taf:rpxmxx:v:24:y:2022:i:10:p:1610-1631
    DOI: 10.1080/14719037.2021.1916064
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